Why Our Economy May Be Headed for a Decade of Depression

Discussion in 'Economics' started by R1234, May 28, 2020.

  1. bone

    bone

    I'll be polite and just say that I'm highly skeptical of your claims that the UK pension system has accomplished all of the macroeconomic miracles that you claim in your linked articles.

    And six years into negative interest rates have certainly not been as helpful to the EU / UK economies as you have stated. On the positive, it has lowered the Euro versus Dollar exchange rate (which was Draghi's real unofficial wink-wink-nod-nod goal all along). But it has also made your banking systems more unstable from a risk tolerance perspective and commercially less profitable. And the negative rates haven't stimulated the growth that you tout in the UK and EU. The UK's growth has been especially moribund quite frankly.

    Please cite empirical evidence that the UK pension system has translated into UK economic growth. Not all pension funds are designed like the US 401K plans - especially public sector pensions. Even for developed economies like the US and UK, you'll find the assumed answer intuitive but the actual empirical evidence is decidedly mixed. The small and medium sized industries are the ones that need access to capital the most. And they are the ones usually excluded from most retirement plan investments.
     
    Last edited: May 29, 2020
    #41     May 29, 2020
  2. Overnight

    Overnight

    Ahh morganist, our favorite non-sponsor sponsor, pushing his wares over and over. He really believes in his economic thesis, and claims it helped the UK with Brexit, and somehow will help the USA. That is why he sent his stuff to the White House.
     
    #42     May 29, 2020
  3. Real Money

    Real Money

    I don't think he understands the US system, and what it takes to get laws enacted.

    If there isn't any money in it for Wall Street, if there isn't a potential windfall for the c-suite, then there's no reason to lobby legislators and it will never become law.
     
    #43     May 29, 2020
  4. morganist

    morganist Guest

    They use alterations in the pension saving personal allowances in the United Kingdom and the interest rate is not negative. They have achieved the targeted 2% real economic growth rate throughout the last decade and inflation has been kept low. The interest rate was the same rate for seven years and under 0.75% the rest of the time. This is evidence pension saving allowance alterations and other pension reforms are the active mechanism controlling the economy. The figures are straight lines, straight line economic growth, straight line inflation and straight line interest rate. Evidence of this is linked to below. Seriously just manage pension saving, it is another saving mechanism like the interest rate it is powerful too.

    http://morganisteconomics.blogspot.com/p/success.html

    Then there is the cost efficiencies the treasury makes on the low interest rate and low rate of inflation that reduces the cost of government debt interest payments. See below.

    http://morganisteconomics.blogspot.com/2020/04/pension-saving-as-economic-control-tool.html

    Then there is the cost efficiencies from managing the tax relief payments the treasury makes to pension schemes. See below. Seriously reducing the annual pension tax relievable allowance from £255,000 to £40,000 is going to inject serious money into the economy and it did. It helped to sustain economic growth at the targeted rate of 2% throughout the last decade.

    http://morganisteconomics.blogspot.com/2019/03/pension-pumping.html?q=pension+pumping

    http://morganisteconomics.blogspot.com/2019/03/optimal-pension-saving.html?q=optimal+pension

    http://morganisteconomics.blogspot....-can-be-taken_8.html?q=optimal+pension+saving

    It is only in the European Union that they use negative interest rates the United Kingdom has not used them yet and should avoid it. I have my own school of economic thought that some of the EU member states use to some degree and I have some influence over the European Commission. That is the end of my relationship with the EU, I also would not be involved in the central bank's operations because I don't think they should use interest rate alterations to control the economy. I have sent alternatives to the European Commission which they said they would consider.
     
    #44     May 30, 2020
  5. kreskos

    kreskos

    I think that many do not understand this system, but around shout that everyone knows and everyone understands.
     
    #45     Jun 1, 2020
  6. Zalak

    Zalak

    I would not really like this, well, probably, we can not avoid.
     
    #46     Jun 10, 2020
  7. morganist

    morganist Guest

    Just optimise your pension system or introduce taxation exemptions for supplementary income if you want to sustain economic growth. Read the below articles. Pension reform worked in the UK.

    http://morganisteconomics.blogspot.com/2019/03/pension-pumping.html?q=pension+pumping

    http://morganisteconomics.blogspot.com/2019/03/optimal-pension-saving.html?q=optimal+pension+saving

    http://morganisteconomics.blogspot.com/2018/05/an-answer-to-pay-disputes-make-sure-you.html?q=r-paid
     
    #47     Jun 10, 2020
  8. ironchef

    ironchef

    As a layperson, pension saving and its effect on national economy that @morganist proposed may not be to far fetch.

    Here are my back of the envelop look at the US:

    1. USG debt ~$24 T

    2. US personal saving ~$1.3 T, a relatively small #

    3. But, US private pensions + 401K saving (not counting SS) ~$32 T.

    If I look at the US as a close system, the USG debt doesn't look so bad.

    What I don't get is why we need USG to take over our pension system for it to work? I just don't trust the government with my money.
     
    #48     Jun 10, 2020
  9. maxinger

    maxinger

    We might ended up with

    A Decade of Impression.
     
    #49     Jun 10, 2020
  10. kreskos

    kreskos

    It could also be the Decade of Decline. But I hope that of course it will not be so.
     
    #50     Jun 11, 2020